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A Vision for the
Mekong River Basin
An economically prosperous, socially just and
environmentally sound Mekong River Basin
A Vision for the
Mekong River
Commission
A world class, financially secure, international
river basin organisation serving the Mekong
countries to achieve the basin vision
The Mission of the
Mekong River
Commission
To promote and coordinate sustainable
management and development of water
and related resources for the countries'
mutual benefit and the people's well-being
by implementing strategic programmes and
activities and providing scientific information
and policy advice.
C Mekong River Commission 2002
Photos by: MRC archive, Jim Holmes, Peter Degen,
Mikkel Ostergaard, Chhoy Pisei, MIchael Wild
Design & Layout: Sawaddh So

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T A B L E O F C O N T E N T S
The Mekong River Commission
4
Message from the Chairman
5
Structure of the Mekong River Commission
6
Organogram of the Mekong River Commission
7
Progress Report 2002
8
Water utilisation "rules" reach 2nd milestone
16
Keeping the river flowing
18
Water quality in the Mekong basin
20
Increasing human resource capacity
22
Peace-building on the Mekong
25
Working together on flood management
28
Meeting the challenge of water for food
30
Donor cooperation in 2002
31
Finance and administration
33
Income and expenditure in 2002
34

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The MEKONG RIVER
COMMISSION
The Mekong River Commission is an
intergovernmental body created in 1995
by an agreement between the
governments of Cambodia, Lao PDR,
Thailand and Viet Nam.
The Agreement on the Cooperation for the Sustainable
Development of the Mekong River Basin came about as
the four countries saw a common interest in jointly
managing their shared natural resources. Signed on 5
April 1995, it set a new mandate for the organisation "to
cooperate in all fields of sustainable development,
utilisation, management and conservation of the water
and related resources of the Mekong River Basin."
The Council, comprising one member at Ministerial and
Cabinet level from each MRC member country,
The agreement brought a change of identity for the
convenes annually and has overall governance of the
organisation previously known as the Mekong
Mekong River Commission.
Committee, which had been established in 1957 as the
Committee for Coordination of Investigations of the
The JC, also comprising one member from each member
Lower Mekong Basin - the Mekong Committee.
country at Head of Department level or higher, convenes
at least two times a year. This body functions as a board
Since the 1995 Agreement, the Mekong River
of management.
Commission (MRC) has launched a process to ensure
"reasonable and equitable use" of the Mekong River
The Secretariat, which provides technical and
System, through a participatory process with National
administrative services to the JC and the Council, is
Mekong Committees in each country to develop rules
under the direction of a Chief Executive Officer (CEO)
and procedures for water utilisation. The MRC monitors
appointed by the Council. The Secretariat is located in
the quality of water resources, and is supporting a joint
Phnom Penh, Cambodia. The Assistant CEO is of the
basin-wide planning process with the four countries
same nationality as the JC Chair and serves a one-year
called the Basin Development Plan. The MRC is also
term.
involved in fisheries management, promotion of safe
navigation, agricultural development, flood mitigation
The MRC is funded by contributions from the four
and hydropower planning within an overall framework of
member countries and from aid donors. Formal
renewable resources management.
consultation with the donor community is carried out
through an annual Donor Consultative Group meeting.
The two upper states of the Mekong River Basin, the
People's Republic of China and the Union of Myanmar,
The National Mekong Committees coordinate MRC
are dialogue partners to the MRC.
programmes at the national level and provide links
between the MRC Secretariat and the national ministries
Structure
and line agencies. The principal implementing agencies
of the MRC programmes and projects are the line
agencies of the riparian countries in the Lower Mekong
The MRC consists of three permanent bodies: the
Basin.
Council, the Joint Committee (JC) and the Secretariat.

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Message from the
Chairman of the Mekong
River Commission Council
It is my great pleasure on behalf of the Mekong River Commission to convey to all readers our warmest regards and
best wishes.
During 2002, the successful course of MRC was maintained with considerable progress recorded also this year. The
progress made within the Mekong cooperation has had a positive impact on the relations between our four
governments. Thereby MRC was also materialising as a key to promoting peace, sustainability, and prosperity in our
region.
At the Ninth Council Meeting in November 2002, we took stock of the Mekong cooperation over the past three years
and concluded that our organisation during that time had made important decisions that have now placed it among the
most promising river basin organisations in the world of developing countries. In this context, the Council took note with
great appreciation that MRC had been awarded the 2002 Thiess Services' River Prize for excellence in river
management.
The Council, with particular satisfaction, noted the progress of the three core programmes, the Basin Development
Plan, the Water Utilisation Programme and the Environment Programme. The first joint presentation to the Council
Members of the programmes clearly demonstrated how they connect to each other and highlighted their importance in
providing our organisation with the means to manage the development of the Mekong Basin in a sustainable manner.
Under the Water Utilisation Programme, we approved a set of Preliminary Procedures for Notification, Prior
Consultation and Agreement. These procedures will provide us with the first set of detailed guidelines for our
cooperation when we use the Mekong water.
The Council in 2002 approved a new Flood Management Programme. With the devastating floods we have
experienced over the past years, flood management and mitigation will be a cornerstone for MRC. We all know that
extensive floods have to be addressed in a regional context. The Programme will over a six-year period establish
capacities for regional flood management and after that time, the four riparian countries will sustain the activities by
their own means. I am confident that with this programme we will be able to significantly reduce human suffering and
loss of lives and property due to floods.
On 1 April 2002, MRC entered into a historic data-sharing agreement with China. It is to the mutual advantage of all
six riparian countries to share information to a larger extent and progress on this should be continued in the future.
In 2002 we reformulated our Fisheries Programme to align it more closely with our three core programmes. The
Fisheries Programme is among the oldest and most significant of MRC cooperation programmes. The new structure
of the Programme allows more donors to support it in a flexible manner. The Programme aims to ensure the livelihood
and food security of millions of people. At the Council, we also took note that a Navigation Programme was under
development and would be ready during 2003.
In 2002, we expanded the circle of observers to the Council meetings. Representatives from ASEAN, IUCN and WWF
participated in the meeting for the first time. We sincerely hope that this new feature will further strengthen the
transparency and credibility of the Mekong cooperation. We wish to work in partnership with other organisations that
share our goal of developing and conserving the Mekong Basin.
The achievements in 2002 have become reality due to the cooperative spirit of our four governments and due to
extensive support from our donors. We are truly grateful for this essential support and are indeed encouraged that the
donors share our vision with respect to the direction we have set for our organisation.
Le Huy Ngo
Chairman of the MRC Council for 2002-2003

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STRUCTURE OF THE
MEKONG RIVER COMMISSION
Members of the MRC Council
Members at Ministerial and Cabinet level, responsible for policy and decision-making
H.E. Mr Khy Tainglim
H.E. Mr Somphong Mongkhonvilay
H.E. Mr Prapat Panyachatraksa
H.E. Mr Le Huy Ngo
Minister of Public Works
Minister of the
Minister of Natural Resources
Minister of Agriculture
and Transport
Prime Minister's Office
and the Environment
and Rural Development
Member of the
Member of the
Member of the
Member of the
MRC Council for Cambodia
MRC Council for Lao PDR
MRC Council for Thailand
MRC Council for Viet Nam
Members of the MRC Joint Committee
Members at Department Head level or higher, responsible for implementing policies and decisions
H.E. Mr Sin Niny
H.E. Mr Sitaheng Rasphone
Dr Plodprasop Suraswadi
H.E. Dr Nguyen Dinh Thinh
Vice-Chairman of Cambodia
Vice-Minister of
Permanent Secretary,
Vice-Minister of Agriculture
National Mekong Committee
Agriculture and Forestry
Ministry of Natural Resources
and Rural Development
Member of the
Member of the
and the Environment
Member of the
MRC Joint Committee
MRC Joint Committee
Member of the
MRC Joint Committee
for Cambodia
for Lao PDR
MRC Joint Committee
for Viet Nam
for Thailand
MRC Secretariat
Responsible for technical and administrative services
Mr Joern Kristensen
Chief Executive Officer

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ORGANOGRAM OF THE
MEKONG RIVER COMMISSION
Government of
Government of
Government of
Government of
CAMBODIA
LAO PDR
THAILAND
VIET NAM
COUNCIL
Members at Ministerial
and Cabinet level
Donor Consultative
National Mekong
Group
Committees (NMCs)
Donor countries and
Member Agencies
cooperating institutions
JOINT COMMITTEE
Members at Head of
Department or higher
MRC SECRETARIAT
Technical and
administrative arm

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Progress
Report 2002
Water Utilisation Programme
2000
2002
2006
The Water Utilisation Programme aims to establish
Introduction of Transboundary Diagnostic
effective mechanisms to improve water resources
Analysis, an issue-based approach to
management for the economic and social development
transboundary environmental management, to
of the Mekong Basin in an environmentally sustainable
be used in support of all core programme
manner, based on the principle of "reasonable and
activities.
equitable water utilisation" while ensuring protection of
the environment, aquatic life and ecological balance of
Introduction of the "flow management" approach
the Basin. The programme has three main outputs,
to determining Mekong mainstream flow
namely:
requirements, integrating both physical and
ecological considerations. This approach is
Creating a basin model and knowledge base for
required to support the mainstream flow
use in future decision-making
procedures due in 2004. (See the article on page
Developing rules for water utilisation between
18, "Keeping the river flowing", for a description
the four Lower Mekong countries
of this approach.)
Management and institutional strengthening
Improvements in management and collaboration
It is a 6-year programme funded by the Global
between the Secretariat and National Mekong
Environment Facility through the World Bank for
Committees.
US$11.9 million. In 2002, the programme was in its third
year and therefore mid-way through implementation.
Expenditures to December 2002 were US$4.25 million,
or 35 per cent of the total budget.
Preliminary procedures for notification, consultation and
agreement on basin-related development projects were
agreed upon in October 2002, marking the 2nd milestone
in the "rules" process. (See page 17 for more
information.)
Other major achievements during the year were:
Continued progress in the development of a
computer-based modelling system to predict
impacts and outcomes of proposed development
in the Mekong River Basin. This component is
under execution by Halcrow consultants and the
work is on schedule for completion in September
2003.

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Basin Development Plan
2001
2002
2004
The Basin Development Plan is funded by donors for
the amount of US$6.5 million over a 3-year time span.
The two aims of the programme are to establish a
planning process at national and regional levels that
will enable the Lower Mekong countries to jointly plan
the development of the Mekong Basin, and to produce
the first regionally-owned Basin Development Plan by
October 2004.
The BDP was formally launched in Bangkok in
February 2002 and a workplan produced by May.
National sub-committees have been established
to support the planning process, liaising closely
with the BDP Team at the MRC Secretariat. BDP
units within the National Mekong Committees
have been established in all four
countries to coordinate implementation.
Representatives from key line agencies
participate in the BDP units at national
level, or are associated as focal contact
points.
The planning process is based on
studies to be carried out in 10 "sub-
areas", selected districts where new
developments have potential for cross-
border benefits. Based on the need for
public participation, a consultative
process involving provincial government,
the private sector and civil society
leaders will propose development
scenarios for integration into the overall
Basin Development Plan.
To date, the programme has made
considerable progress in initiating sub-
area studies. Orientation meetings have been held with
provincial authorities and sub-area working groups have
been nominated. Concurrently, a number of guidelines and
working papers on important aspects of the overall BDP
process have been drafted and regional sector overviews
prepared.

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Environment Programme
2001
December 2002
2004
The programme aims to ensure adequate protection of
Environmental decision support
the environment and the ecological balance of the basin.
Strategic networking and coordination
To this end, it undertakes monitoring and assessment of
Capacity and awareness building
the environment and provides technical and information
Support studies and research facilitation
support to aid the workings of the other two core
programmes.
Major achievements in 2002 were:
The programme has a total 5-year budget of US$23.4
Commencement of the redesign of the existing
million, of which US$7.1 million has been secured. The
basin-wide water quality monitoring network to
sum of US$3.8 million has been disbursed since its start
bring it in line with current needs and standards,
in January 2001.
including upgrading of government laboratories
with essential equipment and staff training.
The Environment Programme has five components:
Development of common classification systems,
Environmental monitoring and assessment
including one for wetlands. Watershed
classification of the basin was completed and the
data incorporated in the MRC Information
System. In cooperation with other agencies,
including the International Centre for
Environment Management, IUCN - The World
Conservation Union and the World Wide Fund
for Nature, a review of protected area
management in the basin was also completed
and recommendations made for improving the
management of these areas.
Drafting of technical guidelines for a
transboundary EIA/SEA (Environmental Impact
Assessment/Strategic Environmental Assess-
ment) system for the Mekong River Basin.
Development of the self-study River Awareness
Kit on CD-ROM. A State of the Basin report has
also been in preparation and will be issued in
2003.
According to plan, the Environment Programme is to be
revised during 2003. The joint review by major donors in
late 2002 provided useful recommendations on the way
the programme can be revised to ensure that it supports
the work of the core programmes of MRC. The revision
is expected to refocus activities within five thematic
areas: monitoring and assessment, humans and
ecosystems, decision support systems, ecosystem
knowledge, and flow management.

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Fisheries Programme
2002
2003
Planning of new programme
In 2002 the Fisheries Programme experienced a cutback
Support for co-management at selected reservoir areas
of over 50 per cent of donor funding, necessitating a
continued, as did promotion of aquaculture systems for
major restructure of its activities. The programme was
indigenous species. Rural extension work for
redesigned to link it more closely to MRC's core
aquaculture development was terminated in the Mekong
programmes, with ongoing activities funded to the value
Delta but project activities have continued, an indication
of US$5.1 million from 2003 to 2005. In addition, new
of the project's overall sustainability.
funding is needed to cover the activities considered to
be priorities within fisheries line agencies in the Lower
Major preparation of the international Large Rivers
Mekong countries, to the value of US$9.3 million.
Symposium (LARS2), to be held in February 2003, was
carried out.
In line with the overall aim of integrating fisheries
information into other planning sectors, there was a high
priority given to communications activities. Regular
publishing of formally edited fisheries papers in three
series (MRC Technical Papers; Mekong Development
Series and Conference Series) has resulted in a higher
profiling of issues to a very broad audience through free
distribution to partners and low-cost sales to the general
public.
A film on fisheries in Cambodia, "Where There Is Water,
There Is Fish" was completed and will go to air in 2003.
An earlier film, "Mekong: The Mother" premiered in
Cambodia and Lao PDR in April 2002.
Valuation of fish resources was carried out through fish
fry sampling and fish-yield-per-habitat studies.
Monitoring of the dai fishery in Cambodia has continued
to provide more information about the link between fish
yields and flood levels.
Agriculture, Irrigation and Forestry Programme
2002 2003
Start-up phase
Based on a catchment management approach, the
programme focuses on activities that require regional
cooperation to promote the sustainability and further
development of food production from the land and water
resources of the Basin.
In 2002, work began on a model to demonstrate and
evaluate the multi-functionality of paddy fields.
The programme has secured funds of approximately
US$7 million. Full implementation of the AIFP will
commence in 2003, including reforestation work in some
border areas.

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Flood Management and Mitigation Programme
2002 2003
2008
Start-up phase through links with existing programmes
The new Flood Management and Mitigation Programme
The 1st Annual Flood Forum was held in Phnom Penh in
was prepared in 2002 through a consultation process in
April 2002, drawing over 80 participants from the region
the four Lower Mekong countries. In November, the MRC
to this new platform for information exchange and
Council approved the new programme, which is
coordination.
presented in the form of six components to be carried out
over a 6-year period:
Relationships with NGOs and other partner agencies
have been strengthened and enhanced, increasing the
Establishment of a regional flood management
effectiveness of flood warning dissemination.
and mitigation centre
Structural measures
Full implementation will begin in 2003. Funding of the
Mediation of transboundary flood issues
programme is fully pledged to the value of US$22 million.
Flood emergency management strengthening
Flood proofing measures
Land use management
Navigation Programme
2002
Drafting of new strategy
In August 2002 the MRC started updating the existing
Projects completed in 2002:
MRC Navigation Strategy which was formulated in 1994.
The eventual Navigation Programme is expected to be
Formulation of the "Technical Guidelines for
made up of five proposed components as titled:
management and monitoring of spills from
navigation in the Mekong River: Assessment
Socio-economic analysis and regional water
and initial recommendations", financed by the
transport planning
Government of Flanders.
Legal framework for cross-border navigation
"Harmonisation of the Aids to Navigation
Safety and environment
Systems along the Greater Mekong River". A
Promotion, coordination and information
joint MRC-ESCAP project, financed by Finland
Institutional development and programme
and the Netherlands.
management
Close dialogue with NGOs and civil society was initiated
The terms of reference for a Cambodia-based project,
during the year in response to concerns raised regarding
"Master Plan for the Mekong Water Transport Sector in
upstream navigation issues. A study of potential
Cambodia" were completed in 2002. This project will
transboundary impacts of upstream navigation
relate closely to the overall regional programme when it
development was also commissioned and disseminated
is developed.
to member governments and
programme partners.
Projects commenced in 2002:
"Institutional Strengthening and Capacity
Building for Navigation in Cambodia", financed
by the Belgian Government
"Digitizing of the Hydrographic Atlas and
Navigation Charts in Cambodia, Lao PDR and
Thailand", financed by the Government of
Finland

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Integrated Capacity Building Programme
2000
UNDP support ends 31 March 2003
Ongoing
from across the different programmes to work together
on cross-cutting issues such as data management,
transboundary issues, socio-economic development and
public participation.
The National Mekong Committees completed corporate
strategic plans in support of the overall MRC Strategic
Plan 2001-2005, and also contributed to the drafting
processes of MRC Administration and Finance manuals
as well as various MRC strategy and programme
documents.
The communications function established within the
Office of the CEO in 2001 was fully operational in 2002.
It was responsible for the quarterly issue of Mekong
The Capacity Building Programme funded by UNDP for
News and other corporate information material,
US$ 2.268 million in 2000-2002 will conclude by the end
packaging and promotion of MRC information products,
of March 2003. However an Integrated Capacity Building
preparation of visual displays at key events, ongoing
Programme with a focus on training and programme
media and NGO liaison and website management. A new
support continues. (See page 22 for more information on
corporate website was developed during the year,
"Increasing human resource capacity".)
including the facility for on-line sales, as part of an overall
marketing and distribution system for information
Major outputs during 2002 included the revision of the
products.
Mekong Programme Manual and training of staff in its
application; coordination of staff training in English,
report and proposal writing, financial reporting,
professional efficiency and specialised computer
Corporate highlights
operating skills; and several improvements to
programme coordination management, human resource
management and financial management systems.
New partnerships
National Mekong Committees focused on outreach by
The MRC established further partnerships in 2002 with
presenting their organisations to line agencies and
institutions sharing common goals for development of
including them in capacity building activities. Joint
the Lower Mekong Region. For the first time, two partner
Committee members received special support with the
NGOs - the World Wide Fund for Nature and IUCN, the
contracting of Senior Advisors who were attached to the
World Conservation Union - attended a Council meeting
rotating chair of the MRC Joint Committee.
with observer status.
Programme coordination was strengthened through a
New partnerships were established with:
Programmes Coordination Group functioning at
Secretariat level, and a Core Programmes Management
Asia Disaster Preparedness Centre
Group involving Secretaries-General from each National
University of New South Wales, Australia
Mekong Committee, programme managers and the
University of Sydney, Australia
Chief Executive Officer. The Core Programmes
World Wide Fund for Nature
Management Group provides the link between
Network of Aquaculture Centres in Asia-Pacific
programme planning at a Secretariat level and
Canada Space Agency and Natural Resources
programme implementation at a national level.
Meanwhile the Programmes Coordination Group
oversees a system of working groups at the Secretariat.
The working groups provide a forum for professional staff

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China agreement
An agreement with China on the provision of hydrological
information on the Lancang/Mekong River during flood
season was signed at the MRC Secretariat on 1 April
2002. The agreement represents another step towards a
closer relationship with upstream partners.
Recognition of excellence
In September 2002, the MRC was awarded the Thiess
Services International Riverprize at the Brisbane
Riversymposium, an annual event held in Australia. The
prize was in recognition of MRC's conceptual model for
development of the Mekong. It was the first time the prize
had been won for management of a river shared by
developing countries.
Research challenge
In late 2002, the MRC was selected as regional
coordinator for the CGIAR Challenge Programme on
Water and Food. The role involves promotion and
coordination of research priorities related to water and
food security in the Mekong River Basin, through
participatory consultation with stakeholders including
advanced research institutes, national research
organisations and NGOs. (See page 30 on "Meeting the
challenge of water for food".)
On the Riverprize
The Thiess Services International Riverprize is the most generous award of its type in the world, to
the value of AUD 100,000. The prize recognises excellence in river management. The prize is open
to any individual, organisation, agency or group of organisations that can demonstrate outstanding
achievement in river management, and provides an incentive to further the worldwide effort of
restoring healthy rivers. It has been awarded annually since the year 2000. Winners are selected by
a judging panel of representatives from universities and organisations such as the Global Water
Partnership, the International Water Association and the Australian Academy of Science.
On receiving the Riverprize on 5 September in Brisbane, MRC Chief Executive Officer Mr Joern Kristensen said,
"This prize is, for us, a confirmation that the concept of river basin management that we have developed is the
right one. We are now confident that MRC represents international best practice and responds adequately to the
needs of the people of the Mekong region, and is seen to be serious about the need to secure livelihoods, and
enable economic and social prosperity....The cooperation between Mekong countries has started before there is
a crisis of water management. There is time for us to learn from both the successes and failures of other river
basin organisations of the world. The Mekong is the living, breathing hope for the future of millions of people."
Previous Riverprizes have been awarded for management of the Mersey River in the United Kingdom and the
Grand River in Canada. Shortlisted nominees for the prize in 2002 were the Danube River in Europe, the Fu-Nan
River in China, the Humber River in Canada, and the Kissimmee River in the United States.

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Water utilisation "Rules"
reach 2nd milestone
With the signing of the 1995 Agreement on the
regarding water use, distinguishing between uses on the
Sustainable Development of the Mekong River Basin,
mainstream and on the tributaries, and between uses
Cambodia, Lao PDR, Thailand and Viet Nam enshrined
during the wet and dry seasons. The Preliminary
the universally accepted principle that each is entitled to
Procedures reflect these various obligations through the
"reasonable and equitable" use of international waters.
following three mechanisms:
This principle is stated in conjunction with another
universally accepted principle of international water law -
1. Notification
that of "sovereign equality", meaning that each state has
equal rights. In order to implement these two principles
Notification is a process of informing the MRC member
and others set out in the Mekong Agreement, firstly, the
states of any proposal for a use of water. Notification is
specific provisions of Article 5 provide the framework for
required only for uses on Mekong basin tributaries or for
proposed uses within the basin and for inter-basin
uses on the mainstream only during the wet season.
diversions (the diverting of water out of the river basin).
Secondly, Article 26 requires the Joint Committee to
2. Prior Consultation
prepare "Rules for Water Utilisation and Inter-basin
Diversions". Thus, in October 1999, the MRC Council
leading to Agreement
committed to negotiate the terms of conditions of 5 sets
of "rules" within a period of 6 years so that these
Prior Consultation is a more rigorous form of
principles can be applied.
communication required for proposals for a use of water
on the mainstream (inter-basin diversion from the
This rule-making process has been undertaken through
mainstream during the wet
the Water Utilisation Program (WUP), one of three core
season and intra-basin use on
programs of the MRC. WUP is a World Bank-executed
project financially supported by the Global Environment
Facility (GEF). Since 2000, the WUP has put in place a
process of extensive technical and legal discussions
between the four countries to enable development of
these rules.
The first set of rules - the Procedures for Data and
Information Exchange and Sharing - was adopted by the
MRC Council at its annual meeting in November 2001.
The second set - the Preliminary Procedures for
Notification, Prior Consultation and Agreement - was
signed by the Council on 12 November 2002 in Ho
Chi Minh City. Putting these procedures into effect
represents punctual achievement of the first two
milestones in the 6 year process, and reflects the
genuine commitment of the four member countries
to maintaining and improving cooperation within the
framework of the 1995 Agreement.
The conditions of Article 5 of the 1995 Agreement
are there to enable the parties to properly plan the
availability of water for optimum sustainable use and
prevention of waste for the benefit of all people in the
Lower Mekong Basin. Article 5 is not intended to restrict
use of water, but rather to provide a framework to enable
reasonable and equitable water use, while respecting the
sovereign equality of each member state by keeping all
parties informed of the proposed uses of water. Domestic
and "minor" uses of water are not included.
Article 5 specifies obligations that member states have

---

the mainstream during the dry season). Prior
states to carry out "due diligence" prior to
Consultation requires the proponent to consult with other
implementation.
member states to explain the proposed use and receive
responses with the aim of arriving at an Agreement to
While notification has been a practice since the signing
proceed supported by a decision by the Joint Committee.
of the 1995 Agreement, the new Preliminary Procedures
The Preliminary Procedures provide for a minimum
prescribe a format for doing so and establishes follow-up
period of 6 months for the consultation process to be
mechanisms so that all notifications are duly
carried out before the proposed use can begin.
acknowledged and validated. Since 1995 and prior to the
3. Specific Agreement
establishment of the Preliminary Procedures, member
states made fifteen separate notifications of water use to
the Joint Committee. The new Procedures are
A Specific Agreement is the most rigorous process. This
"preliminary" so that they can be refined before they are
is required only when there is a proposal for an inter-
finalised in 2003 based on the experience gained
basin diversion from the mainstream during the dry
through their application.
season. The provision imposes a duty upon the
proposing member state to fully describe the proposed
use and for the Joint Committee and the other member
The "rules" schedule
Procedures for data and information exchange and sharing by the end of 2001
Preliminary procedures for notification, consultation and agreement by the end of 2002
Procedures for monitoring existing water uses by the end of 2003
Procedures for notification, consultation and agreement by the end of 2003
Rules for the maintenance of flows by the end of 2004
Rules for water quality by the end of 2005

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Keeping the
river flowing
requirements for food sufficiency, and provide export
income. This has been achieved partly by increasing
areas under production, but mainly by intensification of
cropping, with a rise in the areas irrigated and an
increase in inputs such as fertilizers. The demand for
water for irrigation has resulted in the construction of
reservoirs on the Mekong tributaries, clearly visible on
current satellite images.
The increased use of water for dry-season rice cropping
has resulted in greater intrusion of saltwater from the
South China Sea into the Mekong Delta. Increased
salinity is a threat to the future of agriculture in this area
which is Viet Nam's rice bowl. Less water, and changes
in when the water is available, also affect the ability of
fish to breed and spawn - a crucial factor for food security
in the poorer Mekong countries.
The Mekong is one of the largest rivers in the world, with
an immense volume of water. In full flood, it spills over its
The concept of
banks to cover huge swathes of countryside: the vast
natural floodplains of Cambodia, southern Laos and the
minimum flow
Vietnamese delta. Visitors flying into Phnom Penh in the
flood season can sometimes observe the countryside as
one vast, glittering mirror of water, flecked with sugar
The 1995 Agreement requires cooperation in the
palm trees. From July to October, the sheer force of
maintenance of river flows on the mainstream of the
water coming down the Mekong pushes the Tonle Sap
Mekong:
upstream, causing it to flow backwards into the Great
Lake, which swells to over five times its dry season size.
Of not less than the acceptable minimum
monthly natural flow during each month of the
With such a natural abundance of water, it may seem
dry season;
extraordinary that the Mekong countries have adopted
To enable acceptable natural reverse flow of the
the far-sighted approach of preparing for possible
Tonle Sap to take place during the wet season;
shortages, in the "maintenance of acceptable minimum
and
monthly natural flow" principle enshrined in the 1995
To prevent average daily peak flows greater than
Agreement on Sustainable Development of the Mekong
those naturally occurring on average during
River Basin. Yet it is a need that has become ever more
the flood season.
pressing.
The Water Utilisation Programme of MRC has been
Agriculture is the largest consumer of water. As intensive
committed by the Council to develop agreed mainstream
cultivation increases, more and more river water is
flow "rules" by the end of 2004.
diverted into numerous small or large-scale plantations.
Population, and with it, the demand for food, is expected
Defining the concept of minimum flow will require
to double in the Lower Mekong Basin between 1980 and
evaluation and agreement by all national governments
2020. Rice production increased dramatically from 1990
as to what is "acceptable", in terms of both the physical
to 2000 (see chart on changes in rice production) to
and biological requirements to maintain a certain level of
provide for the growing population, meet the countries'
river health.

---

It is not simply the amount of water flowing down a river
Defining and maintaining
that keeps it healthy. The seasonal pattern of discharge
is important - low flows in dry seasons, high flows in wet
appropriate flow
- and the variability in flow. Floods and spates maintain
channel form and create habitat. They also flush out
undesirable species such as water hyacinth, and trigger
Over 2003 and 2004, the MRC will establish a panel of
migration and spawning in fish and invertebrate species.
experts in the fields of hydrology, fisheries, river ecology,
Similarly, low flow in times of drought may be important
human use of the river and computer-based modelling of
in the control of pest species. So it is the overall "flow
scenarios, to provide the best judgements available as to
regime" that is important, including both water volume
what "critical values" of the river must be protected.
and seasonality.
"Critical values" are those that the countries agree
should not be lost. All available relevant information on
More than 30 countries around the world now use a "flow
the Mekong will be collected for use in decision-making,
management" approach and the number is increasing
and public input will be sought.
every year. The approach can be used on any river. The
methods of determining flow regime have come from
These information and recommendations will provide the
temperate, developed countries; in the case of the
basis for an Interim Flow Plan (IFP) to be presented to
Mekong, the approach to be adopted must take into
the MRC Council in 2004. The IFP would ensure that the
account its own unique blend of social, economic and
present condition of the river is maintained until a more
political realities. The flow regime eventually prescribed
comprehensive and empirically-based strategy for flow
for the Mekong must consider its high levels of
management can be carried out during the period 2004-
biodiversity (it has one of the highest levels of fish
2006.
diversity known in any river in the world) and the large
human population of the basin with livelihoods directly
linked to a range of riverine natural resources including
insects, plants and fish.
80%
70%
60%
50%
Area harvested
% increase 1990-2000
40%
Total production
% increase 1990-2000
30%
20%
10%
0%
Cambodia
Lao PDR
Thailand
Viet Nam
Source:
FAO
Chart:
Changes in rice production 1990-2000.
Increases in irrigated agriculture create more demand for water.

---

Water quality in
the Mekong basin
Water quality continues to be a top concern of
Recent data analysis of the results from this monitoring
governments when considering transboundary
indicates that water quality basin-wide is generally good.
environmental issues. Water quality in general, and
Suspended solids, which contribute to sedimentation,
sedimentation in particular, emerged recently as two of
have been decreasing at sites on the mainstream as far
the three most serious concerns identified in workshops
downstream as Pakse, and at most sites in northeastern
in 2002.
Thailand. This decrease can be attributed to the
construction of dams that trap the sediment, with the
The monitoring of water quality in the Mekong goes back
largest decrease on the mainstream occurring following
to 1984, when the former Mekong Committee
the closure of Manwan Dam in China in 1992, when
established a water quality monitoring network. Samples
filling of the dam began. Similarly, decreases in
were taken and analysed regularly from Lao PDR, Viet
conductivity of the water, a measure of salinity, seem to
Nam and Thailand. Cambodia joined the project in 1992.
be associated with river regulation. They are most
Since this time, water samples have been collected
evident in Thailand.
monthly at about 100 sites throughout the basin and are
analysed for about 20 different chemical parameters.
Within most of the Mekong basin, levels of phosphorus
and nitrogen are not particularly high and not much
change has been observed. However at most of the sites
in the Mekong Delta in Viet Nam, levels are high and
have shown significant increases over the period of
sampling. This may be related to the increased use of
fertilizer in agriculture, increased fish farming or general
increases in human populations along the river and the
consequent increasing inflows of nutrient-rich effluent.
Phosphorus and nitrogen are two important plant
nutrients that have often been implicated as causal
factors in eutrophication. As water bodies become
eutrophic, increasing amounts of algae accumulate in the
water. This may lead to decreases in the concentrations
of dissolved oxygen, especially at night when the algae
use up oxygen through respiration. During the day the
algae produce oxygen through photosynthesis, so the
effect is not readily apparent. However at night when
there is no light and no photosynthesis, fish kills may
occur, especially when there are high temperatures and
little wind to mix the water. Some algal species in
eutrophic waters may produce toxins which can kill
people or animals drinking the water. So high levels of
plant nutrients are a cause of considerable concern.
Future testing
of Mekong water
At present the water quality monitoring network is being
revised. The revision is due for completion in 2003.

---

National consultants have been contracted to conduct
being met. In July 2002 a workshop was held to identify
reviews of sites within their own countries and to
how MRC should proceed to develop a biological
recommend additional sampling sites in areas not well
monitoring programme. Following the recommendations
served by the network, and deletion of redundant sites.
of the workshop, regional consultants are being identified
During 2003 the range of parameters for analysis will
who will work with international mentors to conduct field
also be reviewed.
evaluations of possible bio-monitoring techniques during
2003. This activity will lead to the development of an
The parameters included in the present water quality
ecological monitoring programme to be established in
monitoring activity are limited. Potential contaminants
2004.
such as pesticides and complex organics such as PCBs
and PAHs are not routinely monitored because of the
cost and the lack of available analytical facilities in some
countries. (PCBs, or polychlorinated biphenyls, have a

TSS at Chaeng Saen (1985-2001)
wide variety of industrial uses as heat transfer fluids,
hydraulic fluids and plasticizers. PAHs, polycyclic
2500
aromatic hydrocarbons, are produced through the
2000

combustion of organic materials such as plastics and are
1500
a by-product of some industrial processes.) In 2002,
work commenced on a diagnostic study of water quality
1000
in the basin that will address potential issues arising from
500
such contaminants. The study will evaluate the current
0
status of contaminants and other water quality issues.
Feb-82 Nov-84 Aug-87 May-90 Jan-93 Oct-95 Jul-98 Apr-01 Jan-04
DATE
The 1995 Agreement charges the countries with
Chart: Total Suspended Sediment (TSS)
protecting the aquatic life and ecological balance of the
- Before filling of Manwan dam
Mekong River Basin. At present there is no activity to
- After filling of Manwan dam
collect data on the ecological condition of the river, so it
Source: MRC
is not possible to be certain whether these goals are

---

Increasing human
resource capacity
The UNDP funding supported the improvement of overall
systems for strategic management, programme planning
and execution, human resource management,
information and communications, and financial
management. Further to these efforts, strategic
partnerships were also built with other organisations and
donors to support the process of improving overall
human resource capacity at the Commission.
One of the most exciting initiatives in the range of MRC's
capacity building activities is the Junior Riparian
Professional Programme, which in 2002 had its first
intake of young professionals from the four Lower
Name: Pich Sambo
When the former Mekong Committee became the
Nationality: Cambodian
Mekong River Commission with the signing of the 1995
Age: 35
Agreement on the Sustainable Development of the
Education: Bachelor of Engineering (Hydrology and
Mekong River Basin, major changes were needed in
Geology), Cambodian Technology Institute
order to equip the fledgling river basin organisation to
MS in Water Resources Engineering, Akita University,
effectively carry out its new role.
Japan
While the former Mekong Committee had focused on
Before joining the JRP programme I
management at a national level of many individual
worked in the Department of Geology,
projects, the newly created Mekong River Commission
Ministry of Industry, Mines and Energy.
now needed to take a broad view of economic, social and
My special interest is the relationship
environmental issues in a river basin spanning six
between people's livelihoods and
countries, of which the four downstream members had
managing watersheds. I wanted to join
committed to the cooperation agreement. The shift from
this programme partly because I want to
implementing individual projects, to management of
improve my practical knowledge and skills, but also
sustainable development at a basin-wide level, required
because I believe we need to learn to work together
an adaptation of MRC's organisational structures and
more closely. The real problems in the basin are trans-
management, a review of administrative systems and -
boundary, so we need to cooperate closely to find better
most of all - a shift towards a broader view of river basin
solutions. Working as a JRP, I realise that people from
issues among the staff entrusted with this management.
different countries look at things from different angles. I
have to keep my mind open at all times to appreciate
With the legacy of many preceding years' of identifying
their approach to things. I have to learn to communicate
and funding-raising for individual projects, it was some
my ideas in convincing ways so other people can get
time before a culture change could fully take hold in the
my point. I don't always succeed and sometimes it's
new organisation. From 1999, however, a move to
frustrating - but it is always a challenge. Living and
restructure the Commission's Secretariat won the
working together with people from so many different
support of donors, with UNDP committing to a 3-year
countries is giving me a new outlook on the world - and
Capacity Building Programme to improve the ability of
new friends.
the Secretariat and National Mekong Committees to fulfil
their new roles.

---

Mekong countries. Each Junior Riparian Professional
(JRP) will work at the Secretariat for a period of two to
three years with over 60 professional colleagues from the
Mekong region and elsewhere in the world, rotating
between the core programmes to gain overall experience
in the issues of integrated river basin management.
One of the key aims of their participation will be to instil
systems thinking that can overcome more traditional
"sectoral" views that focus on parts such as dams,
fisheries and agriculture. Systems thinking focuses
attention on how the parts interact, for example, what
impact will more irrigation have on this fishery? What
impact will it have on agriculture further downstream?
The JRP programme will eventually create a corps of
A JRP's normal workday may include research, report-
trained professionals with a broad understanding of river
writing, making presentations and attending workshops
basin issues, who have worked together and have strong
and meetings with government officers, donors and civil
relationships with their peers from neighbouring
society representatives. They become familiar with the
countries.
current issues being debated in international river basin
management, while learning hands-on project
In 2002, the Secretariat also made a study of issues
management by taking on appropriate responsibility
relating to riparian staff turnover, which is caused in part
within a team of regional and international staff.
by the practice of time-bound secondments from
government agencies in the member countries. The
management of river basin issues requires a long term
view. Increasing organisational capacity in this regard will
require the retention of the most able staff with the
Name: Bountieng Sonaxonh
institutional knowledge, historical understanding and
Age: 35
professional skills to carry the organisation into the
Nationality: Lao
future. Recommendations made to the Joint Committee
Education: MSc. in Agricultural Economics, Crimean
of the MRC on this issue are likely to result in easier
Agricultural Institute, Ukraine
terms and conditions for the retention of staff who are
MSc. in Regional & Rural Development Planning,
best equipped for this role.
Asian Institute of Technology
Efforts to maintain gender balance have continued, with
Before joining the JRP programme I
improvements in recruitment practices to ensure that a
was doing integrated watershed
wider pool of women candidates compete for all new
management planning at the
positions. The promotion of adequately qualified women
Department of Planning, Ministry of
has also remained a priority.
Agriculture and Forestry. My special
interest is how we can improve
Through a twinning arrangement between MRC and the
people's livelihoods through natural
Murray-Darling Basin Commission in Australia, MRC's
resources management and planning in watershed
river basin management capacity was further
areas. I wanted to join this programme because I grew
strengthened through training of riparian professional
up on the river and I want my children and their children
staff on topics such as integrated water resources
to enjoy it as well. We have problems in the basin but
management, modelling and data management, basin
we also have time to address them before they become
planning, development of water-sharing guidelines,
more serious. One thing I am learning in the
establishing community involvement in natural resource
programme is that managing any river basin is a
planning, and community awareness-raising.
complex job. Managing one that crosses borders just
adds another dimension. Good solutions to basin-wide
problems will come from looking at all the dimensions
together and treating the basin as a system. It's exciting
to be part of a programme like the JRP and working with
people who have those skills.

---

Name: Worawan Sukraroek
Name: To Quang Toan
Age: 27
Age: 34
Nationality: Thai
Nationality: Vietnamese
Education: MSc. in Environmental Science,
Education: MSc. In Integrated Land and Water
Chulalongkorn University; Bachelor of Science
Resources Development, IHE, The Netherlands
Biology, University of Chiang Mai
Before joining the JRP programme I
Before joining the JRP programme I
was doing research on water
worked for the Ministry of Science,
resources at the Southern Institute of
Technology and Environment, screening
Water Resources. My special interest
projects for funding from the Global
is integrated land and water resources
Environment Facility and implementing
development. I wanted to join this
Agenda 21 for Thailand. This experience
programme because I am interested
really sparked my interest in water issues and I wanted
in how one field of science connects to another. In my
some first-hand experience in this area. I am only
research work, I was focused on very specific issues. I
beginning to understand the problems we face in
think specialist knowledge is important, but we need to
managing a river system like the Mekong. And there is
be able to take a wider view when we are dealing with
so much we don't yet know. Until joining this
problems at a basin-wide scale. Working with people in
programme, I had always thought of education in terms
other fields is helping me to better understand how
of 'formal education'. After working here for only a few
different parts of the system interact. Something else I
short months, I can see that even international experts
am learning on the programme - science doesn't solve
are learning everyday. The learning never stops. And it
problems, people do. All the science in the world is
isn't only technical learning, we also have a lot to learn
useless unless people are willing to cooperate in
about working together. I can't think of a better place to
looking for solutions to problems. Working with
do that than here at the MRC.
colleagues from other countries is a great way to build
up team spirit. After three years we all go back to our
countries but we will take a network of friends and
colleagues with us.
Selected government officers were supported by
fellowships to attend short-term courses on various
subjects at academic institutions overseas and in the
skills relevant to a 21st century river basin commission.
region. Scholarships and organisational assistance were
On any given day, the meeting rooms at the Secretariat
provided to 17 postgraduate students from the member
contain small groups of staff from the four member
countries to do Master degree courses. As well, 14
countries working with a trainer or teacher.
students supported by the MRC to do an Executive MBA
study of 20 months, graduated in August 2002 and
In 2002, 67 training programmes were conducted
returned to their workplaces where follow-up programme
covering MRC programme-related activities, including
action is being prepared. Their areas of study included
Human Resource Development in programme
human resources management, information technology,
management and implementation, LogFrame planning,
regional and rural development planning and water
MRC Programme Manual application, English language
resources management.
and presentation skills, proposal writing and the use of
specialised computer software. The many training
Work also commenced in 2002 in cooperation with
programmes drew a total of 1,955 participants, 17 per
UNESCO IHE Institute for Water Education. Through this
cent of them women. Of the total number of participants,
cooperation, the various training needs of the MRC will
51 per cent came from National Mekong Committees, 34
be brought under the umbrella of an Integrated Training
per cent from the Secretariat and 15 per cent from other
Strategy and Programme, in order that they may be
organisations.
addressed through one comprehensive, coherent and
modular training programme of accredited courses
The results are seen in the increasing professionalism of
conducted at institutes within or outside the region. A
discussions and presentations at workshops and
major part of the training initiatives to date have been
conferences, and in a higher standard of input and
supported by the core programmes of MRC, the Basin
debate at a programme level. And a greater
Development Plan and the Water Utilisation Programme.
understanding of issues at a basin level will, in the long
Overall, there has been a major change in the
run, benefit the people at the grassroots.
organisation as the staff have gradually acquired new

---

Peace-building
on the Mekong
Travelling from Thailand to Lao PDR, tourists and locals
In April 2000, the four upstream countries signed the
alike must cross the Mekong, which serves as the border
quadripartite Upper Lancang-Mekong Commercial
between the two countries. Those going by boat will see
Navigation Agreement, allowing free passage of shipping
rocky outcrops on the stretch from Chiang Saen to Ban
between China, Myanmar, Thailand and Lao PDR.
Huay Xai, where passengers on the slow boat must
overnight before proceeding on to Luang Prabang.
Little information was in the public domain about the
implications of this agreement. An early draft proposal
These algae-covered rocks, for generations an integral
(by Liuxiang; see "Chronology" section for details)
part of the river's landscape, became the focus of intense
suggested that extensive channelisation could be
discussion in the opening years of the new century.
considered in order to clear the way for shipping of up to
2000 DWT, consisting of 500-DWT barges linked in a 2 x
Since as early as 1993, the government of China had
2 arrangement.
expressed interest in opening a river route from land-
locked Yunnan province. Such a route would bring
It was generally recognised that an adequate
Chinese goods into Thailand and Lao PDR, and allow for
Environmental Impact Assessment (EIA) should be
the export of raw materials and other items upriver.
carried out before any actual physical removal of barriers
However the Mekong between China and Lao PDR is
to shipping.
strewn with reefs and shoals - in the dry season a bar to
all but experienced skippers in small cargo boats and
The initial environmental examination report which
domestic ferries. Some of these rocks pose a real threat
provided the basis for river works to proceed under the
to boats and their crew as they negotiate the narrow
agreement had been done by the United Nations
passes. There are around 10 shipwrecks a year in Lao
Economic and Social Commission for Asia-Pacific (UN-
PDR alone.
ESCAP) in their 1995 "Environmental Impact
Assessment for Inland Water Transport Development
The reefs and rocks have their place in the ecosystem.
Projects in the Upper Mekong Sub-region". Based on
Fish shelter in the shade of the outcrops, and feed on the
UN-ESCAP's report, a committee led by Chinese experts
plant life growing there. Deep pools in the riverbed
under the quadripartite agreement continued the EIA
provide refuges for several important Mekong fish
study.
species as the water level falls in the dry season each
year. Many Mekong fish species are migratory, heading
In response to a request from the Joint Committee in July
far upstream to spawn in Lao PDR and Thailand; the fish
2001, the Commission engaged the services of
fry drift down to Cambodia and Vietnam with the current.
independent, neutral experts to review the EIA. The

---

expert reports deemed the EIA process to be insufficient,
with inadequate information presented as a basis for the
conclusions that followed.
Through the Chair of the MRC Joint Committee, the
recommendations were passed on to the countries
involved. The report was also shared with programme
partners of the MRC and has now moved into the public
domain.
While discussions went on, within the space of a year the
volume of cargo passing through Chiang Saen port
increased by 40 per cent - a trend which had begun even
prior to any channelisation being carried out. This
increase in cargo was triggered by the reduction of non-
physical impediments, including better customs
procedures and the abolition of transit fees.
At the July 2002 7th Dialogue Meeting in Phnom Penh,
representatives from China provided assurance to the
MRC member countries that the removal of rocks would
be limited to 11 shoals or rapids and 10 reefs within a
331-km stretch of the river, in order to allow the safe
passage of ships of 100 to 150 DWT. This aim is in
keeping with the Commission's long-term stance that the
The success of its cooperation arrangements is seen in
natural navigation potential of the Mekong should be
the light of the final decision made by the four upstream
promoted, with respect for the normal ecological balance
countries to carry out a very limited channelisation.
of the basin. At present, the MRC is formulating a
Navigation Strategy and Programme, built around the
As basin development planning proceeds, there are
themes of "navigation without frontiers" and "clean river
more trade-offs to be faced, as the countries negotiate
transportation".
approval for a short-list of projects considered to bring
the best and most equitable benefits to the river basin.
The downstream countries of Cambodia and Vietnam
This year's agreement made through the Water
have accepted that river works of this extent are unlikely
Utilisation Programme, for notification, consultation and
to cause much impact in their own countries.
prior agreement between countries regarding river-
related development, is a step further down the road of
But concerns were raised by NGOs, particularly those
pre-emptive resolution on some of these hard issues.
working in Thailand, of local impacts close to the sites of
modification. Through the course of the year, letters,
In the long term, peace-building will grow into a major
statements and clarifications were exchanged with the
function of the Mekong River Commission. For it to be a
MRC regarding its role as a basin development agency
success, there is a need for all players - governments,
and the Commission's stance regarding the river works.
donors, the private sector, and civil society - to support
Open dialogue was also held with Oxfam and its
the idea of an international river basin commission,
partners, in efforts to arrive at understanding on all sides.
tasked with the vital role of maintaining the peace in the
beautiful, resource-rich, and fast developing Mekong
It has become evident that the resolution process gone
River Basin.
through with China centred on the MRC's role as an
international river basin commission. The Commission is
uniquely situated to be the focal point for such resolution;
its mandate, based on the 1995 Agreement, requires a
broad view of development, essential in the task of
hearing the concerns and intentions of all parties. It has
a strong footing, developed through years of programme
coordination between the four Lower Mekong countries,
in the strength of the cross-border relationships at a
middle management level, at which technical and
administrative work is carried out.

---

Chronology
MRC engages three international experts in fisheries,
geomorphology and socio-economics to provide a
August 1995
scoping desk study to identify existing data and
UN-ESCAP releases report on "Environmental Impact
specifying what data would be required to complete a
Assessment for Inland Water Transport Development
satisfactory EIA. The Study results are forwarded to the
Projects in the Upper Mekong Sub-region".
Lao government.
April 2000
August 2001
China, Myanmar, Thailand and Lao PDR sign a
A draft EIA report is submitted to governments of the four
quadripartite agreement allowing Commercial Navigation
countries.
on the Lancang-Mekong.
September 2001
November 2000
The same experts engaged by MRC to provide
A joint survey report is released on the feasibility of the
recommendations to the Lao government review the EIA
waterways improvement project on the Upper Mekong
document. Their recommendations are forwarded to the
River from China-Myanmar boundary marker 243 to Ban
Lao, Thai and Chinese governments, as well as to the
Huayxai in Laos, prepared by the Joint Experts Group on
downstream countries of Cambodia and Viet Nam.
EIA of China, Laos, Myanmar and Thailand.
12 July 2002
December 2000
At 7th Dialogue Meeting between MRC, China and
UN-ESCAP publishes consultant paper by Liu Daqing,
Myanmar, Chinese officials state that China's
"Provisional plan for development of navigation and
involvement in the channelisation project will be for the
regulation of navigation channel on the Lancang-Mekong
removal of eleven rapids and shoals, and ten reefs. At
River. Sub-regional workshop on technological
the completion of the project, the river stretch would be
development of inland water transport infrastructure, 11-
navigable for ships of up to 100 to 150 DWT, with a
15 December 2000."
higher transport safety standard than in the past.
30 April 2001
September 2002
EIA process begins with 19-member team: 9 from China,
Expert findings on the EIA are released to MRC partners
6 from Lao PDR, 2 from Myanmar and 2 from Thailand.
by permission of the Chair of the Joint Committee.
July 2001
4 November 2002
At 14th meeting of the Joint Committee of the MRC, the
MRC meets with Oxfam and partners for question-and-
Secretariat is requested to undertake a full assessment
answer session on the navigation channel issue.
of the findings of the EIA. Lao PDR requests further
assistance from MRC to carry out their section of the
EIA.

---

Working together on
flood management
The governments of the four Lower
Mekong countries have for some time
recognised the need for better overall
coordination of flood preparedness,
relief and forecasting efforts. At the
same time there has been a growing
awareness that floods know no
borders, and effective flood
management can therefore only be
handled on a regional basis.
While floods have always been a part
of life in the Mekong River Basin,
exceptionally severe flooding in the
years 2000 and 2001 caused millions
of dollars worth of damage and claimed
over 1000 lives in the Lower Mekong
Basin. Some of the causes could be
ascribed to unusual meteorological
conditions, but man-made factors such
as changes in land use were also
implicated, highlighting anew the need
for a basin-wide approach to managing
the problem of floods.
between China and the Mekong River Commission just
weeks before the Forum. The freshly signed Agreement
The obvious first step in the process was to create a
on the Exchange of Hydrological Data allowed for China
mechanism for overall coordination. This was achieved
to provide daily readings from the Lancang (the Upper
when the Mekong River Commission hosted the 1st
Mekong) to downstream countries during the flood
Annual Mekong Flood Forum on 23-24 April 2002 in
season. (See box, "China signs data-sharing
Phnom Penh.
agreement".)
The Forum drew over 100 participants from government
The collective experience presented at the Forum
and research organisations within the region. Over two
showed that while many agencies were involved in flood-
days, participants shared information and experiences
related activities, there was a need to improve links.
regarding flood management in their countries, and
Agencies agreed that in this area of often urgent need, all
proposed new initiatives for cooperation.
should build on their own strengths. In the case of the
Mekong River Commission, this means concentrating on
The mix of participants, from a range of Mekong
the provision of technical products and services,
government agencies and NGOs, made for lively
including the current flood forecasting efforts, while
discussion as many different roles and points of view
working closely with agencies involved with the
were represented from groups as diverse as the World
grassroots for better dissemination of flood messages
Resources Institute, Oxfam, CARE, the various Red
and warnings.
Cross agencies from different Mekong countries and
German, Japanese and American research
In the coming year, the MRC will develop working
organisations.
partnerships with some of these agencies for better and
more widespread use of the flood forecasts provided by
The Forum was invigorated by the new basis for
the Commission during the flood season.
upstream cooperation through an agreement signed

---

China signs data-sharing agreement
Formal technical cooperation between China and the Mekong River
Commission began on 1 April 2002 with the signing of the Agreement on
the Exchange of Hydrological Data from the Lancang-Mekong. According
to the agreement, China will provide daily readings of river levels during
the flood season to the four downstream countries of Cambodia, Lao
PDR, Thailand and Viet Nam.
Exchange visits between technical staff in China and the Lower Mekong
countries occurred during 2002, with the MRC supporting an upgrade of
two river monitoring stations in China with AusAID funding. The upgrade
allows for standardised readings to be sent via a SIMcard, identical to
those used in mobile phones, to the MRC Secretariat where a software
programme modifies the forecast information for that day based on the
new readings.
The information from China has improved the accuracy of flood forecasts
for stations in Thailand and Lao PDR, since it allows a more accurate
reading of the situation in China on a day-to-day basis. Data transmission
from China occurs from June to October, through the Hydrology Bureau
of China's Ministry of Water Resources.
China has been a regular dialogue partner with the Mekong River
Commission at yearly meetings since 1996.
The MRC manages a complete network of hydrological monitoring
stations on the Lower Mekong, which transmits information directly to the
Secretariat in Phnom Penh on a daily basis. River level forecasts are
posted daily on the MRC website at www.mrcmekong.org
Components of the Flood Management
and Mitigation Programme
A Regional Flood Management Centre will carry out flood monitoring, forecasting, warning and dissemination
services. Medium and long-term forecasts will be provided and risk assessment tools developed. The Annual Flood
Forum will continue as a key activity of the new centre, for coordination of responses to flooding on a regional basis.
Structural measures including reservoirs, embankments and waterways will be studied, and guidelines and technical
standards for good practice in flood management developed.
Mediation of trans-boundary flood issues will be carried out through the work of a coordination section that can
facilitate dialogue and resolution of issues on land management and land-use planning, infrastructure development and
cross-border emergency management of floods. Recommendations on water and land-use legislation will be
developed.
Flood emergency management will be strengthened by the sharing of knowledge about floods through awareness-
raising activities, training needs assessment and the development of suitable training materials.
Flood proofing measures will be developed and promoted in flood-prone areas, with a particular emphasis on working
in poor communities with building design guidelines, financing mechanisms and awareness-raising.
Land use management in the upland and lowland areas of the main tributaries and the mainstream of the Lower
Mekong Basin will be studied to identify and analyse the causes of flooding, with a view to improving planning practices.

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Meeting the challenge
of water for food
Water is closely tied to food security. In the Mekong
stakeholders, determining research priorities for the
region, 80 to 90 per cent of all freshwater use is devoted
region through a participatory consultation process, and
to growing food, while the fishery produces over 2 million
developing a baseline for monitoring the impact of the
tonnes of fish and other aquatic products a year,
programme. As regional coordinator, the MRC is also a
providing more than 75 per cent of animal protein intake
member of the Challenge Programme management
in the diets of rural people in the river basin.
team that is responsible for day-to-day management
within annual budgets and work plans approved by the
The water-for-food challenge for the coming 20 years is
Challenge Programme consortium. Participation in the
to find ways of growing more food with less water, while
research programme is open to all interested
improving rural livelihoods and protecting the
international and national research organisations and
environment.
universities, NGOs, advanced research institutes and the
CGIAR Future Harvest Centres.
In 2002, the CGIAR Challenge Programme On Water
and Food selected the Mekong River Basin as one of
The MRC's new role builds on cooperation that began at
seven "benchmark" basins in developing regions around
a research workshop co-organised with CGIAR in
the world. Benchmark basins are areas of population
January 2002, on the coordination of research priorities
growth and economic development, facing the
for the Mekong. CGIAR, the Consultative Group on
challenges posed by these twin pressures. The other
International Agricultural Research, is an international
benchmark river basins are the Nile and Limpopo river
consortium of research centres focused on food security
basins in Africa, the Sao Francisco river basin in Brazil,
issues.
the Indo-Gangetic river basin in South Asia, Iran's
Karkheh river basin, and China's Huanghe (Yellow) river
basin.
The programme will provide grant funding for research
directed at solving real-life problems in these selected
areas, based on five key research themes of crop water
productivity improvement, multiple use of upper
catchments, aquatic ecosystems and fisheries,
integrated basin water management systems and global
and national food and water systems.
Examples of opportunities to improve water productivity
include arrangements for managing water across
boundaries, bringing together sectors that compete for
water use, breeding crops that need less water,
improving water and land management, and combining
rice and fish farming.
The Mekong River Commission is the regional
coordinator for the programme in the Mekong Basin, with
the role of promoting awareness of the programme to all
Water and food in the Mekong region
Proportion of water use devoted to agriculture
80 to 90 %
Percentage of the basin's land area devoted to farming
40 %
Number of people fed by the Mekong Basin's rice crop
300 million people a year
Percentage increase in demand for food products
20-50% in next 30 years
Amount of water needed to yield 1 kg of rice
Minimum 3,000 litres
Percentage of basin population who fish or farm
80 %

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Donor Cooperation
in 2002
In 2002, donor support to MRC remained strong. Funding agreements made with donors amounted to about US$ 11.6
million and pledges of further support were officially indicated in an amount of approximately US$ 5.7 million.
Compared to the situation in 2001, when funding agreements came to US$ 15.6 million, agreements in 2002 were
made at a somewhat lower level. This, however, reflected that most MRC programmes are by now well funded and that
funding agreements therefore are not required at the high levels of previous years.
By the end of 2002, donors had signalled their strong support for the new Flood Management and Mitigation
Programme, approved by the Council in November 2002, with a total budget of about US$ 19.7 million.
In 2002, MRC received funding and pledges from Denmark, Finland, Germany, Japan, the Netherlands, New Zealand,
Switzerland, the United States and UNDP.

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New Funding Agreements in 2002
Total Value of New Funding Agreements:
US$ 11.664 million
Programme
Thousands of $
(Approximate Conversion)
1.
Consolidation of Hydrological Data and Multi-Functionary
404
Roles of Tonle Sap and its vicinities
2.
UHA Digitalizing in Cambodia, Laos and Thailand and
263
Hydrographic Survey on the Bassac River from Phnom
Penh to Vam Nao Confluence
3.
Development of MRC Flood Management and Mitigation
350
Strategy Implementation Programme
4.
Development of Regional Strategy for Flood Protection and
206
Prevention
5.
Annual Mekong Flood Forum
72
6.
Investment Subcomponent on Integrated Forest
5000
Rehabilitation in the Lower Mekong Basin
7.
Basin Development Plan
1200
8. Environment
Programme
1100
9.
Provision of Flood Early Warning to Flood-Vulnerable
1125
Communities in the Lower Mekong Basin
10.
Position of Communications Officer
130
11. Core
Support
100
12.
Twinning arrangement with Inland Fisheries Research and
501
Development Institute (IFReDI)
13.
Regional coordination of Research Challenge Programme in
1,213
Mekong Basin

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Firm Pledging Received in 2002
Total Approximate Value of Firm Pledging:
US$ 5.773 million
Programme
Thousands of $
(Approximate Conversion)
1. Core
Support
1093
2.
Environmental Governance and Flood Management
1000
3.
Sustainable Management of Water Catchment in the Lower Mekong Basin
2050
4.
Flood Management and Mitigation in the Lower Mekong Basin
1370
5.
Gender Mainstreaming in Water Resource Development
260
Finance and
Administration
During 2002 the MRC Secretariat successfully managed, through vigorous budget control, to cover the deficit carried
over from 2001.
Routines were established to create a closer relationship between the implementation of programmes, and their
financial and administrative monitoring. The result is a more holistic system of programme monitoring that also ensures
strong financial management.
The Secretariat will continue its firm budget control and seek cost-effective solutions in providing overall support to the
programmes.
Following the decision by MRC's previous banking partner in Cambodia, Credit Agricole Indosuez, to close down its
operations in the country, the Secretariat selected a new banking partner, Cambodia Public Bank. The decision was
based on a careful scrutiny of the banking services available in Cambodia.
A comprehensive system for staff performance evaluation, Participatory Appraisal Review, was developed during 2002
for implementation in 2003. The aim is to ensure that the organisation's human resources are used in the best possible
way, by helping to create a positive framework for interaction between staff and supervisor.
Through the year, the administrative support provided by the Secretariat ensured the smooth running of MRC
programmes, most of them in full operation in 2002.

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Income and Expenditure in 2002
2002
2001
USD USD
Contributions
Donors
11,448,269 12,111,815
Riparian governments
1,087,065 623,160
12,535,334 12,734,975
Revenue
Professional income
47,752 22,604
Interest
16,785 65,319
Miscellaneous
18,115 19,880
82,652 107,803
Total Income
12,617,986 12,842,778
Expenditure
Project expenditure
Personnel services
6,285,493 5,545,192
Sub-contracts
693,672 558,169
Training
1,317,864 1,169,193
Equipment
1,025,032 894,938
Miscellaneous expenses
563,298 499,816
Water Utilisation Project
2,632,083 1,486,245
12,517,442 10,153,553
Administrative expenditure
Staff salary and fees
1,028,551 914,908
Common staff costs
424,872 405,100
Travel
3,948 3,327
Contractual services
92,073 56,465
General operating expenses
204,430 164,840
Supplies
18,882 20,639
Furniture and equipment
27,005 86,867
MRC meeting expenses
154,093 88,244
Support to National Mekong Committees and programmes
193,326 88,847
2,147,180 1,829,237
Total Expenditure
14,664,622 11,982,790
Foreign Exchange Gain
131 6,574
Movement in Fund Balances
(2,046,505) 866,562
Fund Balances as at 1 January
7,089,295 6,222,733
Fund Balances as at 31 December
5,042,790 7,089,295

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